CME: Cheese, Milk Futures Reverse Course Again

US - Friday’s increase on barrels turned out to be a tease. Barrels dropped a nickel this morning on a steady stream of offers, writes Alan Levitt.
calendar icon 11 October 2011
clock icon 1 minute read

Trades took place as low as $1.72 before late bids brought the closing price to $1.7350.

Milk futures reacted sharply. NOV plunged limit-down (-75¢) but regained a few cents by the close.

Fourth-quarter contracts, which had increased 36¢ on Friday, settled 48¢ lower today (see chart). Cheese futures also declined, losing 5.1¢ in the NOV-JAN contracts.

Spot butter was bid another penny higher, giving a boost to butter futures. NOV-FEB jumped 1.9¢ after increasing 1.8¢ on Friday.

NDM futures were quiet today and whey futures were mixed. Futures remain discounted to current cash prices.

The November Class one prices in California are $20.26 in the north (down $1.24 from October) and $20.54 in the south (down $1.23).

Federal Order Class I prices come out Friday 21 October.

CWT accepted bids to provide export assistance on sales of 2.7 million lbs of cheese for delivery through the end of the year. Year-to-date acceptances total 74.9 million lbs.

Further Reading

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